Birmingham Forward has crashed heavily into the red on the back of a major shake-up of the professional lobby group.

But it insists it is dealing with the issues and is on course to break even this year.

The organisation lost £84,000 against an original forecast of a £20,000 deficit as turmoil within the high-flying body, made up of accountants, lawyers, bankers and others, saw its head, Lorraine Francis, quit.

She walked away with a £16,000 pay-off and much of the summer was spent putting the pieces back together.

Members are set to get details of the accounts this week ahead of the annual general meeting on March 23.

Former MEP Simon Murphy subsequently became chief executive of Birmingham Forward and he has transformed it. Just one person remains from the previous regime and staff now take in four full-timers and two parttimers including Mr Murphy himself.

Mr Murphy said: "It is a disappointing result for Birmingham Forward. The reason has been abnormal and non- recurring items of expenditure."

In addition to the Francis pay-off around £18,000 was spent in consultancy fees - primarily payments to interim chief executive Charles Smith who held the fort during Birmingham Forward's difficulties. A variety of what were described as professional and legal costs plus recruitment fees accounted for another £20,000.

Much of this was in finding a replacement for Ms Francis, with her succession contested - primarily between Mr Murphy and Mr Smith.

Mr Murphy said: " The majority of the loss was as a result of the restructuring. There was less income generated from events for a few months around the middle of the year. And there was a dip in subscriptions, with an £11-12,000 loss against 2003.

"The figures are disappointing but are exceptional and non-recurring expenditure. Recently most events have been over-subscribed and income has been strong. We are trading very successfully. In addition subscription fees are very healthy."

There are always firms joining and leaving Birmingham Forward for whatever reason.

But it is holding its own. At the end of 2003 there were 243 company members while at the end of 2004 the figure was 244.

In addition associate organisation Birmingham Future, which caters for young professionals, had 370 members.

Birmingham Forward is a non-profit organisation.

It will cover the deficit from reserves and Mr Murphy said it was earmarked for breakeven this year.

Mr Murphy said: " The restructuring has been difficult and costly. But it is short term pain for long term gain."

Meanwhile the organisation has big plans to take advantage of Birmingham's establishment of a London office.

It is looking to expand its lobbying activities and try and encourage investors into the region.

It has two major ambitions for its use of the London office. It is hoping to build on the MIPIM property conference in Cannes - where Birmingham property professionals have long sent a delegation - by persuading major players to meet their Midland counterparts in the capital.

Secondly, it is looking to approach the Lord Chancellor's office by submitting a report on legal services and their provision in Birmingham which could prove a blueprint across the UK. The idea is to launch it at a London forum to an audience of top legal brains.

Both events are likely to take place around May/June.